Should Trades Businesses Charge Call-Out Fees? Picture this scenario: you run a trades business, and the debate about whether to charge customers a call-out fee is a constant thorn in your side. It’s a predicament that countless tradespeople face, and the truth is, not many customers relish the idea of a call-out fee. So, where does that leave us? Let’s delve into this contentious topic and shed some light on the matter. For instance, imagine you’re at the helm of a trades business that tackles a handful of small projects each day. Say your charge-out rate per hour stands at $100—an amount determined by meticulous calculations or industry standards. This rate is meant to cover various overheads, including holidays, sick leave, superannuation, and other costs for your team. Now, here’s the crux of the issue: how much do you charge during those hours that your team isn’t directly on-site? Let’s … Read more
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How Much Should Your Tradie Business Charge? The age-old question of determining the ideal pricing strategy is a conundrum that frequently perplexes tradie business owners. As a complex and multifaceted issue, there’s no one-size-fits-all answer. While I can’t cover all the nuances in a single blog, I can shed light on the key considerations that often occupy the minds of tradie entrepreneurs. The Balancing Act: Customer Loyalty vs. Profitability For many tradies, the dilemma revolves around striking a balance between retaining long-term customers and ensuring profitability. The value of a loyal, longstanding client cannot be overstated, and the prospect of alienating them with sudden price hikes is a valid concern. Crafting sustainable relationships while covering costs and generating profit remains a top priority for tradie business owners. They’re acutely aware of the investments they’ve made in equipment, aiming for long-term sustainability and profitability. Starting with the Fundamentals: Understanding Costs One … Read more
Read More Mastering the Art of Following Up on Quotes: A Comprehensive Guide Discussing the topic of following up on quotes might not ignite excitement for everyone, but let’s face it, this aspect of business is often the key to success. How you follow up on quotes reflects not only your dedication but also the integrity of your promises made even before the quote was given. The Neglected Follow-Up: A Common Misstep The frustration around this topic is undeniable, as many tradespeople admit to the occasional lapse in follow-up efforts. However, any level of follow-up is a step in the right direction. At the very least, remember to touch base with potential clients – a simple act that sets you apart. The timing of your follow-up is essential. The consensus among businesses is to wait between three and seven days before reaching out after sending a quote. While larger projects might … Read more
Read MoreUnderstanding Cost of Sales: A Valuable Tool for Tradie Business Owners In the world of business, knowing your numbers is crucial for making informed decisions and ensuring profitability. One essential aspect of financial analysis is the “Cost of Sales,” which plays a significant role in helping tradie business owners comprehend their financial performance and make strategic choices. Let’s explore what Cost of Sales is, its purpose, and how it can aid tradie business owners. Cost of Sales, Explained: The Cost of Sales represents the direct expenses incurred to produce the goods or services sold by a business. For tradie businesses, these costs typically include materials, wages, subcontractors, equipment rentals, and permits related to completing specific projects or jobs. Essentially, it encompasses all the direct costs associated with providing the services or products that generate revenue. The Purpose of Cost of Sales: The primary purpose of Cost of Sales is to … Read more
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SCROLL DOWN TO GET A FREE COPY OF MY SALES PROCESS THAT COULD IMPROVE YOUR QUOTING SUCCESS BY UP TO 30% – 5 Tips On Quoting That Will Get More Work For Your Trades Business Doing Enough Quotes? So the first one here, I’ve put it down as, do enough quotes. What I find is some business owners, they get too busy and they stop quoting, and then they sort of start to run out of work and find themselves in a position where they have to win the jobs that they’ve already quoted. They find themselves in this game of, “Well, I’ll take some price off to close it.” So all of a sudden their margin starts dropping. Having enough quotes in the pipeline and having them done consistently means that you can pick and choose jobs, and you don’t find yourself having to slash prices and adding extra … Read more
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Today I’ve got a little topic that came up with one of my customers which is really common. It is getting paid on time. This business is in the construction industry and it’s the start of February and guess what, they haven’t been paid
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There are many reasons people decide to run their own business and one of the most important is to make profits. So let’s learn the proper way to work out how to quote for jobs with a specific profit margin. Just like the last blog, it’s easier to follow the process by using an example.
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This is the last video in the three-part series on how to calculate cost plus work. In the previous two blogs and videos, the different parts of this calculation have been covered and this final one brings them altogether.
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There are many reasons people decide to run their own business and one of the most important is to make profits. So let’s learn the proper way to work out how to quote for jobs with a specific profit margin. Just like the last blog, it’s easier to follow the process by using an example.
To keep everything clear, we’ll use straight forward maths so the process is easy to follow and you can repeat it in your business.
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Today we’re going to learn about how to allow for overheads when calculating cost plus work. Knowing how to do this will help keep your business profitable and will ensure all your hard work pays off.
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